Which of the following statements is not true?
A) An aging schedule shows only overdue accounts.
B) An aging schedule shows the probability that a 67-day account will be unpaid when it is a 68-day account.
C) Average collection period data is somewhat flawed if sales are seasonal.
D) Collection efforts may involve legal action.
E) Investments in trade receivables equal average daily sales times average collection period.
Correct Answer:
Verified
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